Labor landscape has changed

Sunday

Sep 1, 2013 at 6:00 AMSep 2, 2013 at 12:18 AM

By Bronislaus B. Kush, TELEGRAM & GAZETTE STAFF

WORCESTER — The number of jobs in the region is at about the same level that it was a decade ago, but the nature of the local employment base has dramatically and irrevocably changed, federal labor statistics show.

For the most part, area workers enjoying this Labor Day weekend no longer pick up a paycheck at the bustling mills and factories that once dotted the Central Massachusetts landscape.

Rather, they're most likely earning their livings at the biotechnology, health or educational institutions that now drive the local economic engine.

"The employment level in Worcester is exactly where it was 10 years ago," said Victor A. Matheson, an economics professor at the College of the Holy Cross. "But what has dramatically changed is the type of jobs that are now available."

According to statistics recently released by the U.S. Department of Labor, there were about 295,800 jobs in the Worcester area as of June 30. Of those, 56,900 were in the education or health services fields.

By comparison, manufacturing, once the bread and butter of the local economy, netted only 23,800 positions. That number represents a loss of 2.5 percent of jobs from June of 2012.

Analyzing the trends in employment numbers and putting them in perspective with the drastic changes to the global economy, many economics and urban planning specialists believe there's little chance of growing the number of local jobs for unskilled workers in the manufacturing or assembling sectors.

"GM is not coming here," said Timothy J. McGourthy, Worcester's chief development officer. "But that doesn't mean we can't expand the number of jobs in the city."

Over the past 40 years, many local manufacturing interests have either shut down or have moved to other places where wages and operational costs are lower. At factories still operating in the region, improved technologies, robotics and manufacturing efficiencies have sliced worker positions.

"This is a phenomena we are seeing across the industrialized world," said John Brown, an economics professor at Clark University.

Mr. Brown said there's been "a real drop-off" in Worcester manufacturing jobs over the past couple of decades, and that has led to the loss of good-paying jobs for blue-collar and immigrant workers.

"The assembly line jobs that once paid $25 an hour with good benefits are, for the most part, all gone," added Mr. Matheson.

Economists said there's stiff competition for the companies that still provide jobs for the unskilled.

Many communities, for example, offer generous tax breaks or other financial incentives to lure companies.

"In many instances, city officials have to give away an awful lot to get these companies to locate in their communities," said Mr. Matheson. "It's almost like bribery."

Anaylsts, however, believe the cuts in non-skilled manufacturing positions may not be as bad as they seem.

They said that many of those factory workers have matriculated to the expanding health care and education fields.

"You just don't have people with Ph.D.s working in the health care sector," explained Mr. McGourthy. "There's always a need for jobs like processing paperwork or maintaining buildings."

And the experts noted that, despite the continuing loss of unskilled jobs, individuals working in the Worcester region are earning good salaries.

For example, Mr. Brown said that Worcester is 35th among metropolitan areas on the per capita wage scale and the average annual salary for a local health care worker is about $50,000, higher than a lot of other regions.

Though the city has showcased its endeavors to attract high technology, science, and other related industries, administrators said they haven't given up on efforts to pursue manufacturing and assembly firms that require a skilled workforce.

Mr. McGourthy said Worcester Technical High School and other local educational institutions continue to turn out graduates who can fill those positions.

"We have the workforce that these companies need and that's important," he said.

Officials also said that local jobs in the trades, transportation, professional, business and financial services sectors continue to see good growth.

While many see good news in the recent federal statistics, Ronald Charette, executive director of the South Worcester Neighborhood Improvement Corps., believes more has be done to secure jobs for those living in the inner city neighborhoods.

He said there are too few jobs available for those individuals and that the existing positions don't pay enough to support a family.

Mr. Charette said that there are about 4,700 households served by his agency and most living in South Worcester have less than two years worth of high school education under their belts.

He said a recent survey showed that neighborhood residents need to make $12.38 an hour to pay just their rent and utility bills.

Mr. Charette added that most average a wage of $10.50 per hour.

"Our residents work at Walmart, McDonald's and the dollar stores," said Mr. Charette. "It's good that they have jobs but the positions don't pay enough to support their families. Our people are stuck in low-paying service jobs, and the biggest barrier to their success is their lack of education."

He said neighborhood residents need programs to train them for skilled jobs but he said governmental funding for that instruction is no longer available.

"Our folks are smart and they want to work, but they don't have the education," said Mr. Charette.